For Immediate Release | Wednesday 4th December 2024
From the Desk of the Chief Economist EXCLUSIVE ANALYSIS Help to Buy Scheme: Does it really help First Home Buyers? The number of First Home Buyers in Australia increased by 23.6% in the past 5 years, and the amount of mortgage loan committed increased by 41.1%.
Since COVID-19 we have seen an overwhelming amount of support for first-home buyers, both at
Federal and State Government levels. However, there seems to be a trade-off that buyers must bear.
On Wednesday 27th November 2024, the Commonwealth Government passed the legislation
to create the Help to Buy Scheme; to be administered by Housing Australia. Its purpose is to help
low and middle-income earners buy their first home, with an equity contribution from the Federal
Government.
Help to Buy Scheme – the details Administered by Housing Australia, the Help to Buy scheme is a national shared equity scheme
created to support 40,000 (open to a maximum of 10,000 eligible Australian households annually
over 4 years) low and middle-income earners in their property journey. The scheme will begin once it receives Royal Assent and the Program Directions are implemented, its exact start date is to be determined.
Under the program, applicants must have a 2% deposit on the purchase price of the home. Buyers
are responsible for covering all other costs such as stamp duty conveyancing fees, legal expenses etc. Property price caps also apply, depending on the location of the property. Table 1. Help to Buy Scheme Contribution
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